Tuesday, July 26, 2011

The market continued lower today through yesterday's low. As mentioned in yesterday's update, this would essentially result in a change to the count. The best count now appears to be a double zigzag higher since this month's low as illustrated above. A flat unfolding since the July high is now the preferred view.

An alternate is a complete impulse wave [i] higher since the July low. The sub-waves for this impulse wave breaks guidelines, so this is not a favored count. In addition, the strong bounce yesterday works better as an 'x' wave in a double than a 'b' wave given the retracement levels reached.

A continuation lower tomorrow for an impulse since today's high is expected. If there is another impulse lower after this, the alternate double zigzag wave [ii] count will become the primary count.

The March-April zigzag-looking rally to new highs and June and July rallies' retracement levels suggest recovery highs lie ahead.

The market continued lower today through yesterday's low. As mentioned in yesterday's update, this would essentially result in a change to the count. The best count now appears to be a double zigzag higher since this month's low as illustrated above. A flat unfolding since the July high is now the preferred view.

An alternate is a complete impulse wave [i] higher since the July low. The sub-waves for this impulse wave breaks guidelines, so this is not a favored count. In addition, the strong bounce yesterday works better as an 'x' wave in a double than a 'b' wave given the retracement levels reached.

A continuation lower tomorrow for an impulse since today's high is expected. If there is another impulse lower after this, the alternate double zigzag wave [ii] count will become the primary count.

The March-April zigzag-looking rally to new highs and June and July rallies' retracement levels suggest recovery highs lie ahead.

My trading philosophy is 95% based on my own Elliott Wave analysis of the S&P 500. I try to keep my analysis and trading as simple as possible and do not use trend lines, channels, or definite retracement, price, or time targets. To me, inspecting the proportionality and symmetry of a market's price structure is the key to mastering the principle; it is through this that low-risk, high-reward trading opportunities are found.

Because they are the only things I look at when trading, the quality of the charts I post on this blog are very important to me. I think you will find my work to be the best Elliott Wave analysis of the S&P 500 on the internet.